We are seeing the most aggressive rate hike in a three-month period since the mid-90s. The rates are now hovering between 4-5%, which is a determining factor as to whether you can afford to get a loan and make monthly payments. Not great news if you’re a borrower, but if you’re a real estate investor or looking to buy a home to live in, it’s going to be a more advantageous climate because the market has slowed. There are fewer buyers at the moment, so more properties stay on the market longer, meaning the prices must eventually plateau or come down. We have not reached that point yet, as there are still too many consumers seeking too few houses.

The Fed will likely not return to the super low-interest rates unless we experience another global catastrophe and/or stimulus payments are reintroduced. Those stimulus payments were designed to keep the economy moving during the unusual times we’ve been living through and drove the debt to six trillion dollars over the last two years. US debt (also known as T-Bills or Treasury Bonds) is sold based on the 10-year yield, which determines where the interest rates will go, so the government must pay it back at a higher rate to attract buyers. When things are unstable around the world, more investors get nervous and put their money into US T-Bills, considered the safest place to invest, even while losing money to inflation. How does that impact your ability to get a mortgage loan at a decent rate? Unfortunately, you will find yourself competing with inflation and those other entities looking to buy US debt. Will rates continue on their current trajectory, and is there any hope on the horizon for homebuyers? Jeff’s guests include:

– Jennifer Conrad (Malibu Funding) talks about rising interest rates.

– Stacy Hartmann (Homepoint) introduces products that allow more buyers into the marketplace.

– Jennifer Long (IBIS Financial) discusses ARM products and non-QM loans.